There is no telling when the unexpected will happen to your business. Whether it is an interruption of operations, storm damage, theft or even a fire, unanticipated issues can quickly throw an otherwise prosperous business into turmoil. This is why people take insurance, after all – to mitigate the effects of unexpected events.
Businesses sign up for insurance because it helps them take care of any costs associated with liability claims, such as property damage, among others. Without insurance coverage, the business owner may have to pay out-of-pocket for claims and damages against the business. But what happens when the insurance company takes to a cat and mouse game in your business’ hour of need?
When filing a business insurance claim, you must be aware of the common tactics that insurance companies use to avoid meeting their end of the bargain. Here are some of the common signs to look out for if you suspect the insurance company might be acting in bad faith:
Unreasonably delaying your claim
Some insurance companies purposefully delay responding to claims to discourage the applicant from continuing to pursue it. When the insurance company is intentionally slowing the claims process, the law can hold them accountable. Thus, if this extends beyond the timeframe indicated in the policy without a clear explanation, then chances are the carrier could be acting unfairly.
Manipulating the terms of the contract
Deceptive practices on the part of the insurance company can take multiple forms. For instance, the insurance company can deliberately fail to inform you about the claim deadline or fail to disclose the existence of coverage as a means of avoiding settlement for the claim. Sometimes, the insurance company may look for certain conditions that were not on the original policy contract.
Running a business comes with its share of risks. To protect your business from these risks, it is in your best interest to have adequate insurance. However, it is not unusual for the insurance company to engage in unfair practices when processing your claim. If this happens, you must know how to safeguard your business’ rights and interests.